April 2 (Bloomberg) -- Richard Chandler Corp., the biggest
shareholder of Sino Forest Corp., appointed a team to lead its
proposal to restructure the forestry company that filed for
bankruptcy protection last month.

Richard Chandler, owner of a 19.49 percent stake, according
to data compiled by Bloomberg, said Sino-Forest needs to rebuild
based on good governance, entrepreneurship and conservative
financing, according to an e-mailed statement from the
Singapore-based private investment group.

Sino-Forest Corp. filed for bankruptcy protection as part
of a plan that may see the Chinese timber grower sold to
bondholders, nine months after it was accused of fraud by short
seller Carson Block.

“Sino-Forest faces a range of complex problems,” David
Walker, an adviser on the forest products industry appointed to
lead the restructuring team, said in the statement. “A
successful restructuring which builds a long term sustainable
plantation business will take a considerable amount of time and
a strong team to drive the process.”

Investors in Sino-Forest, once the largest Chinese forestry
company by market value, lost about C$3.3 billion ($3.3 billion)
since Block’s research firm Muddy Waters LLC published a report
June 2 accusing it of overstating earnings. The shares plunged
74 percent before being suspended Aug. 26 amid investigations by
Canadian regulators and police. Allen Chan, the company’s co-founder, stepped down as chief executive officer in August.

Bennett Jones is Sino-Forest’s Canadian legal adviser.
Osler Hoskin & Harcourt LLP is Canadian legal adviser to its
board. Moelis & Co., Goodmans LLP and Hogan Lovells LLP are
advising the group of bondholders.

The cases are: In the Matter of a Plan of Compromise or
Arrangement of Sino-Forest Corp., CV-12-9667-OOCL, and Sino-Forest Corp. v. Muddy Water LLC, CV-12-9666-OOCL, Ontario
Superior Court of Justice (Toronto).